Applied Econometrics and International Development
This article discusses the effects of remittances on labor force participation. Remittances reduce the probabiliTY of participation in the labor market because they increase the relative price of leisure. Using data from the national household survey held in Colombia in 2008, we found that remittances reduce the probabiliTY of participation in the Colombian labor market. An interesting result of the article is the gender characteristic of remittances. Results show substantial gender-based differences of the effect of remittances on labor participation. Finally, the endogeneiTY of remittances is a particular phenomenon for females but not for males.